The greatest constraint faced by banks considering the alternative of lending to Bangladeshi villagers is:
A. counterfeit Carfax reports that make it difficult to properly assess collateral.
B. having limited funds available for loans.
C. not being able to determine appropriate currency exchange rates.
D. not having qualified loan officers to make the loans.
Answer: B
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Identify at least three key factors in the HPAE's economic success?
What will be an ideal response?
The cost of capital to a firm is equal to
A) a risk-free rate plus an equity premium. B) a risk-free interest rate. C) an equity premium charged by lenders. D) the Treasury bill rate minus an equity premium.
If expected inflation is constant and the nominal interest rate increases by 3.5 percentage points, then the real interest rate
a. increases by 3.5 percentage points. b. increases, but by less than 3.5 percentage points. c. decreases, but by less than 3.5 percentage points. d. decreases by 3.5 percentage points.
Monopolistically competitive firms do not differentiate their products by:
A. changing the products' physical characteristics. B. selling products at different locations. C. offering different levels of service that come with a product. D. charging different prices to different groups of consumers.